Toronto: With increasing investment flows and greater socio-economic cooperation between companies of both countries, bilateral trade between India and Canada is likely to reach $20 billion by 2012, commerce minister Kamal Nath said on 19 June.
The minister said the two countries should strive enough to achieve $10 billion trade each in goods and services in the next five years.
“There is a need for an early conclusion of the stalled Doha round of global trade talks as it would help fuel bilateral economic growth between India and Canada,” Kamal Nath said addressing the India-Canada CEOs roundtable in Montreal.
“It is heartening that in the last few months, Indian investment in Canada has picked up substantially,” he said.
While in February, the Aditya Birla Group’s Hindalco acquired Novelis for $6 billion, the Essar Group acquired Algoma Steel for $1.7 billion in April. Last year, the Tata Group had acquired Teleglobe.
“This trend is likely to continue. I also hope that more Canadian companies will invest in India to exploit the synergies that exist between the two sides,” he said.
Adding that India’s economy is currently poised to reach 10% growth, he said, “growth of this magnitude would unleash demand of various kinds. We are now faced with the need for better infrastructure, particularly power, roads, energy, environmental technology and raw materials.”
To further economic enhancement between each other, India and Canada have also mooted the idea of signing a Bilateral Investment Protection Agreement.